Court Cases about
Massachusetts Business Trusts
A number of U.S.A. court decisions and legal treatises have defined and
described a Massachusetts business trust.
●"A business or common-law trust, commonly known as a Massachusetts
trust, is a form of business organization consisting essentially of an
arrangement whereby property is conveyed to trustees, in accordance with the
terms of an instrument of trust, to be held and managed for the benefit of
such persons as may from time to time be holders of transferable
certificates issued by the trustees showing the shares into which the
beneficial interest is divided, which certificates entitle the holders to
share ratably in the income of the property, and on termination of the
trust, in the proceeds thereof." Corpus Juris Secondum, 12A 495.
●"The essential attribute of a business trust is that the property is
placed in the hands of trustees who manage and deal with it for the use and
benefit of the beneficiaries." Enochs & Plowers v. Roell, 154 So.
299, 170 Miss 44.
●"A business trust is a common law entity formed by contract, and
thus, is not subject to the same types of state regulation as a
corporation." - Elliott v. Freeman, 220 US 178; and Crocker v.
Malloy, 39 US 270.
●"The business trust also called common-law trusts, are created under
the common law of contracts and do not depend upon any statute." -
Schuman-Heink v. Folsom, 159 NE 250.
●"One of the objectives of business trusts is to obtain for the trust
associates, most of the advantages of corporations, without the authority of
any legislative act and with the freedom from the restrictions and
regulations generally imposed by law upon corporations." - 13 Am Jur 2d,
Page 379, Paragraph 51.
●"One of the main objectives of a trust contract is to obtain most of
the advantages of corporations, but with freedom from the burdens,
restrictions, and regulations generally imposed upon them." - Ashworth v. Hagen Estates,
165 Va 151, 181 SE 381
●"A business trust may be organized to engage in any business in
which individuals or corporations may lawfully engage." Wagner Oil and
Gas Co. v. Marlow, 278 Pacific Reporter 294, 137 Oklahoma 116; Weber
Engine Co. v. Alter, 245 Pacific Reporter 143, 120 Kansas 557; and 46
American Law Reports 158.
●"Statutes may authorize limited liability of partnerships and
corporations, but those statutes do not by implication prohibit the creation
of Contract Trusts to enjoy similar immunity by virtue of the Common Law." -
Goldwater v. Oltman, 292 P 624. 71 ALR 871 Annotation
●"It is established by legal precedent that business pure trusts are
lawful, valid business organizations." - Baker v. Stern, 58 American
Law Reports, 462.
●"A pure trust is not subject to
legislative control. The U.S. Supreme Court holds that the trust is created
and its relationship comes under the realm of equity based upon the common
law and is not subject to legislative restrictions as are corporations and
other statutory entities or organizations created by legislative authority."
- Croker v. MacCloy, 649 US Supp 39; and Elliott v. Freeman, 220 US
178.
●"A
Pure Trust is a contractual relationship in trust form." - Berry v.
McCourt, 204 North Eastern Reporter 2d 235.
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